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Eden mayor and city officials begin planning for detention center closure

The mayor of Eden and city officials are in the planning phase as they prepare for the closing for the Eden Detention Center, reports the Concho Valley News.

The Eden Detention Center is operated by CoreCivic (formerly known as Corrections Corporation of America), one of the largest for-profit prison corporations in the United States. The contract to operate the facility will expire on April 30. CoreCivic has already notified its employees with a 60-day layoff notice. The facility employs people from San Angelo, Brady, Menard, and Ballinger, amongst others.

As well as employing people from the surrounding towns, the detention center is responsible for around 40 percent of the revenue generated each month by the city's water fund. That is equal to $40,000 a month, and city officials say losing that revenue would financially cripple Eden. San Angelo city council members recently passed a resolution in support of keeping the detention center open, with officials in Brady wanting to do the same.

Private prisons already booming under President Trump

Private prisons are already booming under President Trump, reports The Week.

Last August, the Department of Justice announced it would would begin the process of phasing out the use of private prisons, due to serious concerns over safety and treatment of inmates in private prisons, as well as a declining prison population. This decision was celebrated by activists against private prisons, and saw stocks plummet for major for-profit companies such as CoreCivic (formerly CCA) and GEO Group.   

Fast forward a few months, and things have changed. President, Donald Trump, has put a major focus on “law and order,” especially when it comes to detaining undocumented immigrants. New Attorney General Jeff Sessions has rescinded the original DOJ memo and told the Bureau of Prisons to once again rely on private prisons. This led to an increase in private prison stock.

New DOJ Attorney General Sessions reverses policy on private prisons

The Department of Justice's new Attorney General, Jeff Sessions, has issued a new memo rescinding last summer's decision to phase out the use of private prisons. According to Rewire, Sessions instructed the Bureau of Prisons on Thursday to once again rely on private prisons.

Last August, former Deputy Attorney General Sally Yates issued a memo saying that the BOP would begin phasing out the use of private prisons and would not renew any contracts that were being reviewed. This statement followed a review by the Department of Homeland Security into the conditions of private prisons and whether they were still productive or necessary. Following the announcement, stocks in private prison companies dropped dramatically.

Former juvenile facility may not be empty much longer

The Port Arthur News reports that the Jefferson County Commissioners Court approved a request for proposals to develop the Al Price State Juvenile Correctional Facility, which is currently vacant.

In December, Corrections Corporation of America (which has since rebranded itself as “CoreCivic”)  addressed the Jefferson County Commissioners Court during a workshop, and will submit a bid to turn the facility into a “secure” facility aimed at reducing recidivism in adults with substance abuse disorders. They were one of two groups who spoke to the court about potential use of the facility. Four to five groups are now interested in the property. All of the interested groups want to open substance abuse treatment rehabilitation facilities.

The facility was closed in 2011 and the county cited a reduced budget and a significantly lower youth population as key reasons to close the facility. A charter school from Dallas had leased the building but never paid for the utilities which led to the contract being canceled.

County Judge Jeff Branick said that any interested parties would first relieve the county of the burden of paying the utilities. The facility also needs maintenance work done, with the HVAC, lights, and alarms needing to be repaired. The judge said that the county will not help any bidders with upfront costs.

Private prison company interested in vacant juvenile facility

A private prison company is interested the vacant Al Price Juvenile Center is Beaumont, Texas, reports Grits for Breakfast.

Corrections Corporation of America (which has since rebranded itself as “CoreCivic”) is hoping to turn the facility into a "secure" facility for adults with substance abuse disorders. According to The News, CCA has already spoken to the Texas Department of Criminal Justice (TDCJ), and would defer to TDCJ for the number of inmates they would have detained at the center. County Judge Jeff Branick said "I fully support treatment programs," and that it was about time that the criminal justice system dealt with the root causes of recidivism.

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County Judge says family detention center is still an option

The application for a family detention center in San Diego is still pending, despite a court ruling against the state licensing family detention centers as child care facilities, reported Caller-Times of Corpus Christi.

Duval County Commissioners voted in July to begin contract negotiations with Serco, a UK-based private prison company, to turn an old nursing home facility into a family detention center. This decision came about after Jim Wells County decided against entering into a contract with Serco over the nursing facility, which sits in both Jim Wells and Duval counties.

The contract from Duval County is still pending following the court decision by District Judge Karin Crump that invalidates the rule that Texas Department of Family and Protective Services used to license family detention facilities as child care facilities. This decision impacts the  South Texas Family Residential Center in Dilley, Texas, and the Karnes County family detention. These facilities are operated by the private prison companies CoreCivic (formerly CCA), and GEO Group, respectively.

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Judge issues final judgement preventing licensing of Texas family detention centers

According to a press release from Grassroots Leadership, an Austin judge has issued a final judgement on a lawsuit by immigrant families to stop the licensing of family detention facilities in Texas.

The decision by Judge Karin Crump of the 250th District Court will effectively prevent the Texas Department of Family and Protective Services (DFPS) from issuing licenses to the nation's two largest family detention centers - the South Texas Family Residential Center in Dilley, Texas and the Karnes County Residential Center in Karnes City, Texas. Both of these facilities are run by private prison corporations, with the Dilley facility run by CoreCivic (formerly CCA), and Karnes operated by GEO Group.

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The banks that finance private prison companies

A new report by In the Public Interest uncovers which Wall Street banks finance the private prison industry's two leaders, CoreCivic (formerly Corrections Corporations of America) and GEO Group.

The report shows that six banks have played a role in financing private prisons. Those six banks are Wells Fargo, Bank of America, JPMorgan Chase, BNP Paribas, and U.S. Bancorp. The following are key findings from the report:

  • At the end of June 2016, CCA had total debts of $1.5 billion and GEO Group had total debts of $1.9 billion.

  • CCA and GEO Group have relied on debt financing from banks to expand their control of the criminal justice and immigration enforcement systems by acquiring smaller companies that provide “community corrections” services, like residential reentry and electronic monitoring.

Immigration agency expands family detention facilities

The San Antonio Express reported that Immigration and Customs Enforcement (ICE) recently extended the contract at the South Texas Family Residential Camp in Dilley, Texas until 2021.

The detention center in Dilley, which is run by Corrections Corporations of America (CCA), is used to detain Central American mothers and children who are seeking asylum.

This comes as the Department of Homeland Security, which oversees ICE, is reviewing whether they should follow the Department of Justice's decision to phase out the use of private prison corporations. "I don’t know what they’re thinking, to be honest with you,” Michelle Brané, director of the Migrant Rights and Justice Program for the Women’s Refugee Commission, said of ICE’s renewal of the Dilley contract.

The new contract, though for the facility in Texas, is actually passed through an existing contract with the city of Eloy, Arizona.  The U.S. government will pay about $13 million a month for the facility in Dilley, which is about half of the previous payment.

ICE has also said that they are reviewing proposals for an additional 2,500 family detention beds at various sites. GEO Group, the private prison company that runs the Karnes County family detention center, said that they will propose taking a portion of the new beds that ICE are seeking.

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Private prison stocks surge after Trump election

The stocks of two private detention companies have soared following the election of Donald Trump, reported Bloomberg Markets.

Stocks in CoreCivic (formerly Corrections Corporation of America) rose by as much as 60 percent before leveling off at a 34 percent increase. GEO Group saw an increase of 18 percent in their stock at the time same time. These two companies are seen to benefit from Trump's presidency, as he has vowed to increase the number of deportations, which will lead to the need for more immigrant detention centers. These are often run by private companies such as CoreCivic and GEO Group.

The announcement and following increase of stocks helped turn around some of the losses both companies had experienced following the announcement from the Department of Justice (DOJ)  that they would begin to phase out the use of private prisons. The president-elect is most likely to reverse the policy of the DOJ to no longer use private prisons.

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